Question

During a housing crisis in the early 1940s, which of the following was used by some local governments to prevent inflation?

a.price ceilings
b.minimum wage
c. price supports
d.price floors

Answer 1

During the housing crisis in the early 1940s, the one that government used to prevent inflations is : A. Price ceilings
With price ceilings, the government limit the maximum amount that the sellers could give to its consumer, preventing the price from going too high

Hope this helps

Answer 2

The correct answer is A) price ceilings.

During a housing crisis in the early 1940s, the following measure was used by some local governments to prevent inflation: price ceilings.

A price ceiling is a term used to identify the maximum price an individual that sells something is allowed to charge for its service or product. This way, the government limits the seller to get the price to maintain fair commerce practices. Most of the time the price ceiling is established by law when dealing with important products or services for society such as houses prices or rental prices. That is why during a housing crisis in the early 1940s, price ceiling was used by some local governments to prevent inflation.